Video Transcript:
All right, good day, everyone. This is David from Trader Dale, and today I am going to show you three examples of how we use Dale’s three basic Volume Profile setups to trade NQ futures intraday, not only to give us an entry, but also to give us a bias. Now, if you’ve been through Dale’s videos, maybe you have his courses, or maybe you’re part of our Accelerator FTA program or whatever, you have most likely been introduced to these three very straightforward Volume Profile concepts that he trades. A lot of the trades that you see are based on forex pairs, which is useful across any asset class. So, what we’re showing you today is something you can use on anything, but you’re used to basically seeing these mostly on forex pairs. Today, we’re going to look at those three basic setups, one of each, using NQ futures that you can use to trade intraday and use as key levels. So, let’s start with the first one.
Now, the first one is the trend setup right here. And when you’re dealing with the trend setup, you want to see a large trending move in the market. You want to see some displacement. You want to see a strong move. This isn’t a trend. This isn’t a trend. This isn’t a trend. This isn’t even a trend. These are not trends. This is a trend. And as you can see, that volume area held as well.
So, the first two examples we’re going to look at are trends. What we do here is take the Volume Profile, and depending on which one you use, this happens to be TradingView Fixed Range Volume Profile. I’m going to take it from the bottom here, and I’m going to take it to the top of the move because when price comes down here, I want to see where the heavy volume is. It’s pretty clear in this range. Most of the volume was right here. We do have another volume area down here, which we could eventually tap into, but we have a very strong volume area here. And as you can see, price defended that area pretty nicely. You can use this area to day trade off of. This price here is right in the heart of the New York kill zone. That is a trend setup.
This is a second example of a trend setup. Now, this one’s a little different. The reason why is because, if you notice, in this trend setup we have a lot more volume nodes than we did on the other one. The other one was pretty clean. It had no volume above, no volume really below, and a clear, heavy-volume POC. Now, this does have a POC, but as you can see, there are other volume nodes in this area that are kind of big and almost as big as the POC. So, let’s kind of see how we use those.
Again, we take the Volume Profile, we attach it to the low, and I go right to the high. And when price breaks out and pulls back here into this range, I want to see where the volume is. So, you look at these different areas right here. First of all, let’s look at this area right here. We have a little point of control there. We have a little volume node there, and we have a volume node there. And then we have a little volume node there. As you can see, price reacts to these volume nodes very, very nicely.
Most importantly, when you look at the larger volume node here, if you look at this area, this is the largest volume node. As you can see, once we broke back through, when we retraced it, it acted as resistance, just like Dale teaches. Now, on the way to a retracement here, we held the main point of control right here in this volume area for a bounce. So, you can use these two POCs to trade: one for support, one for resistance.
Now, let’s go a little bit further down the road. On Thursday, last Thursday, we tapped into this high-volume area. Now, we didn’t tap into the POC, but we tapped into the top of that level right here and had a really nice move out of it. These are two really good examples of trend continuation. This is a trend continuation setup. Now, this is a trend continuation setup too, but this retracement just went deeper. That’s why it’s important to see where the volume is, because here there was so much volume that it stopped price from going lower. That wasn’t the case here. There were different volume areas distributed inside that level, so they’re not all created equal. But the Volume Profile will always give you that information.
All right, let’s go to the next one. This is the rejection setup. We have consolidation. We have a clear manipulation up and a rejection of higher prices moving down. If we put a profile right around that area right here and we draw a POC, which is already kind of drawn—the IB mid—I forget what that is, but it’s the same line, so I’m not going to draw another one. When price comes back into that level, as you can see, it was a perfect rejection of intraday prices. That is the rejection setup. That is where price moves out of a consolidation, manipulates up or down, and then reverses quickly.
You want to draw a profile right around that manipulation, this candle that started up this little consolidation area. You want to see where the highest volume is in this area. And here, it turns out to be a nice little D-curve right in the middle. And as you can see, when price came back, it was a perfect touch.
So, the last one is the volume accumulation setup. As you can see, we have a big move higher, then a volume cluster here, and then a move away from it. The first touch here tapped into the higher level but did not tap into the highest level of volume here and moved away from it. That does happen. But yesterday, on Tuesday, as you can see, the low of the day came in, took out that low, which is typically an inducement. Anytime you see price fall short of these high-volume areas and move away, a lot of the time that’s an inducement. This area is still valid. And if you draw a little square around the high-volume area right here, as you can see, price tapped right into it and has now traded away from it.
Now, one way you can use Smart Money Concepts in a situation like this is you can go long on the inverse of this Fair Value Gap right here and target these highs up here. You can use a change in the state of delivery right here from this order block. Once we close above that, it now acts as support. That is two. And you can also combine Candle Range Theory because, if you look at a four-hour chart down here, this candle broke the low here, finished well inside the range of the body, and is delivering from this four-hour Fair Value Gap.
So, you have a CRT, you’ve got a Volume Profile point of control, and you have lower-timeframe confirmation and execution to trade with. The Volume Profile, the CRT model, and the Fair Value Gap give you a bias. The CRT and the four-hour Fair Value Gap also give you a narrative. The 15-minute off the four-hour gives you the execution.
And these are some examples of how you can use Volume Profile using Dale’s three main setups: the trend setup, trend continuation setup, the rejection setup, and the volume accumulation setup.
Hey everyone, it’s Dale here. I hope you enjoyed the video. If you’d like to trade alongside me and our team of prop-firm-funded traders every day, then click the link below the video and hop aboard. We’re looking forward to trading with you.
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